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COBRA Continuation Coverage Assistance under The American Recovery And Reinvestment Act

COBRA Continuation Coverage Assistance under The American Recovery And Reinvestment Act
Source: U.S. Department of Labor, Employee Benefits Security Administration

The American Recovery and Reinvestment Act of 2009 (ARRA) provides for premium reductions and additional election opportunities for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly called COBRA.

The Labor Department has developed four notice packages tailored to fit different types of plans and individuals:

1. A general notice to be given to qualified beneficiaries covered by plans subject to the federal COBRA at the initial COBRA election opportunity;

2. An abbreviated general notice, which may be furnished to individuals who elected and are still covered by COBRA;

3. An alternative notice to be sent by issuers of group health insurance coverage subject to state continuation coverage laws; and

4. A notice of extended election periods for eligible individuals who declined or discontinued COBRA coverage.

Each package contains a summary of the premium reduction provisions, questions and answers, and forms to use in requesting the premium reduction. Also included are forms for requesting COBRA coverage if the individual is not already enrolled.

Under COBRA, most group health plans must give employees and their families the opportunity to temporarily continue their group health coverage when coverage would otherwise be lost for reasons such as termination of employment, divorce or death.

The most recent information concerning ARRA and COBRA related benefits, dated May 24, 2009, is posted on the U.S. Department of Labor?s website at: http://www.dol.gov/ebsa/COBRA.html

Full post as published by New York Public Personnel Law on May 26, 2009 (boomark / email).